Environmental Group Wants 150% Levy on Tobacco

The Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) is asking for a minimum of 150% special levies on all tobacco products.

This move came despite the fact that minister of finance, Kemi Adeosun, had announced a raise of import duty on tobacco from 20% to 60% in early 2017. Other products that also had their duties increased were imported rice, sugarcane, cassava products, and salt.

However, ERA/FoEN argued that the new policy falls short of recommendations by public health experts, adding the nation stands to gain from imposing higher taxes and other levies on tobacco if done with public health in mind. ERA/FoEN says that on the surface the new policy looks promising but a deep analysis shows it offers subtle protection for local tobacco companies which already controls 90% of the Nigerian market and will now produce more, leading to youth addiction.

ERA/FoEN deputy executive director, Akinbode Oluwafemi, also said that the government decision to leave out locally-produced tobacco from the high taxes or levies regime is an indication of disconnect between the Ministries of Finance and Health and would be counter-productive as other tobacco companies would start considering building new factories in Nigeria to produce their products to worsen the current health burden of the nation.